Explain to me like I am a 5th grader.... Who pays tariffs?

[citygator]

Can any MAGA supporter please explain which answers are correct below?

Who pays the tariff?

A) A company in a foreign country ships an item to the US and then mails a check or wires money to the US government to cover the tariff

B) The US company pays the US government when it picks up the shipment at the port

Also curious...

What happens when a tariff is increased?

A) The company in a foreign country simply sends a bigger check to the US government and gets by with less profit

B) The US company pays the US government more money when it picks up the shipment at the port and raises its prices to cover the higher cost which is paid by the US consumer

 

[Votto]

Can any MAGA supporter please explain which answers are correct below?

Who pays the tariff?

A) A company in a foreign country ships an item to the US and then mails a check or wires money to the US government to cover the tariff

B) The US company pays the US government when it picks up the shipment at the port

Also curious...

What happens when a tariff is increased?

A) The company in a foreign country simply sends a bigger check to the US government and gets by with less profit

B) The US company pays the US government more money when it picks up the shipment at the port and raises its prices to cover the higher cost which is paid by the US consumer

Why were you not asking these questions when Biden, not only kept some of Trump's original tariffs, but actually increased some of them?

https://www.cnn.com/2024/09/13/politics/china-tariffs-biden-trump/index.html

In fact, where were the Senate Republican to dispute Biden's tariffs like they are Trump's tariffs?

 

[citygator]

Why were you not asking these questions when Biden, not only kept some of Trump's original tariffs, but actually increased some of them?

https://www.cnn.com/2024/09/13/politics/china-tariffs-biden-trump/index.html

In fact, where were the Senate Republican to dispute Biden's tariffs like they are Trump's tariffs?

It's a simple question on how they work. Did Biden explain how they worked somewhere?

 

[justoffal]

Can any MAGA supporter please explain which answers are correct below?

Who pays the tariff?

A) A company in a foreign country ships an item to the US and then mails a check or wires money to the US government to cover the tariff

B) The US company pays the US government when it picks up the shipment at the port

Also curious...

What happens when a tariff is increased?

A) The company in a foreign country simply sends a bigger check to the US government and gets by with less profit

B) The US company pays the US government more money when it picks up the shipment at the port and raises its prices to cover the higher cost which is paid by the US consumer

Oh that's easy.... The tariff dwarfs have always been in charge of carrying the money from the people paying the tariffs to the people charging them.

See:

 

[Woodznutz]

Can any MAGA supporter please explain which answers are correct below?

Who pays the tariff?

A) A company in a foreign country ships an item to the US and then mails a check or wires money to the US government to cover the tariff

B) The US company pays the US government when it picks up the shipment at the port

Also curious...

What happens when a tariff is increased?

A) The company in a foreign country simply sends a bigger check to the US government and gets by with less profit

B) The US company pays the US government more money when it picks up the shipment at the port and raises its prices to cover the higher cost which is paid by the US consumer

Sometimes the foreign manufacturer and the importer share the cost of the tariff.

 

[citygator]

Sometimes the foreign manufacturer and the importer share the cost of the tariff.

So the foreign manufacturer mails a check for half the cost to the US government and the US company pays the rest when they pick it up?

 

[candycorn]

Sometimes the foreign manufacturer and the importer share the cost of the tariff.

Can you give an example of this from the last few years where a froeign MFG and a US Importer shared the costs?

 

[Darkwind]

Can any MAGA supporter please explain which answers are correct below?

Who pays the tariff?

A) A company in a foreign country ships an item to the US and then mails a check or wires money to the US government to cover the tariff

B) The US company pays the US government when it picks up the shipment at the port

Also curious...

What happens when a tariff is increased?

A) The company in a foreign country simply sends a bigger check to the US government and gets by with less profit

B) The US company pays the US government more money when it picks up the shipment at the port and raises its prices to cover the higher cost which is paid by the US consumer

How Tariffs Work​

Tariffs are taxes imposed by a government on goods imported from other countries. They are typically calculated as a percentage of the value of the imported goods and are collected by customs authorities at ports of entry. For example, a 25% tariff on a $100 product would add $25 to its cost67.


The primary purposes of tariffs include:

• Raising government revenue: Tariffs generate income for the government, although they now account for only a small fraction of federal revenue compared to earlier periods in U.S. history35.
• Protecting domestic industries: By increasing the cost of imported goods, tariffs make domestic products more competitive, shielding local manufacturers from foreign competition25.
• Influencing trade practices: Tariffs can be used strategically to address trade imbalances, punish unfair practices like dumping (selling goods below production cost), or pressure foreign governments on non-trade issues46.

Who Pays Tariffs?​

The direct payer of tariffs is the importer—the company or individual bringing the goods into the country. Upon entry, the importer pays the tariff to the government36. However, the economic burden of tariffs is often passed along:

1. Consumers: Importers frequently increase retail prices to offset tariff costs, meaning that consumers ultimately pay more for affected goods. For example, tariffs on everyday items like toys and vegetables can lead to higher grocery and retail prices17.
2. Businesses: Companies that rely on imported goods as inputs for production may face higher costs, which can reduce profit margins or force them to raise prices for their products8.
3. Foreign exporters: In some cases, foreign firms may lower their prices to remain competitive despite tariffs, absorbing part of the cost themselves8.

Although tariffs are paid domestically, they can hurt foreign exporters indirectly by making their goods less competitive in the importing country’s market47.

Economic Impacts​

Tariffs have mixed effects:

• Domestic benefits: They can protect local jobs and industries by encouraging consumers to buy domestic products.
• Consumer costs: Higher prices from tariffs disproportionately affect low-income households and industries with slim profit margins.
• Global trade tensions: Tariffs often lead to retaliatory measures from other countries, potentially harming exports and global economic growth57.

In summary, while tariffs are paid by importers at the border, their costs ripple through the economy, ultimately impacting businesses, consumers, and foreign exporters alike.

To address the second two items in the summary.

Higher prices to the Consumer means that what was inexpensive items based upon cheap or slave labor is now the same or close to the domestically produced item. This will influence behavior to encourage domestic purchases.

When you have to allow your 'friends' to screw you over to maintain good relations, are they really friends at all?

Answer: They are not.

 

[bendog]

Beer was quietly added Wednesday to a list of aluminum-linked products now subject to a 25 percent U.S. import duty. The move, buried in a bureaucratic annex and part of a broader trade war unleashed by the Trump administration, has left European brewers fizzing with confusion — and drinkers foaming with rage.

The uncertainty goes beyond cans. The customs code used — “beer made from malt” — appears to cover all beer, no matter how it’s packaged: cans, bottles or kegs.
.....

The fallout is domestic, too. Much of the aluminum used in U.S. can production comes from Canada, and American smelters aren’t equipped to produce enough of the alloy used for beverage packaging.

Beer lovers haven’t exactly waited quietly. On Reddit’s r/beer, a forum of nearly half a million brewing nerds, the mood was bleak. One of the most upvoted reactions simply read: “A massive sales tax on beer? What a fucking asshole.”

Trump made all beer more expensive — and no one knows why

A 25 percent U.S. tariff meant for aluminum is now hitting all imported beers — bottled or canned.

www.politico.eu

 

[otto105]

Why were you not asking these questions when Biden, not only kept some of Trump's original tariffs, but actually increased some of them?

https://www.cnn.com/2024/09/13/politics/china-tariffs-biden-trump/index.html

In fact, where were the Senate Republican to dispute Biden's tariffs like they are Trump's tariffs?

Answer the question fuckup

 

[Woodznutz]

So the foreign manufacturer mails a check for half the cost to the US government and the US company pays the rest when they pick it up?

The foreign manufacturer reduces the price of the product which effectively reduces the amount of the tariff.

Sometimes the importer bears the cost and doesn't raise prices. Sometimes they pass on the entire cost to the customer.

 

[otto105]

The foreign manufacturer reduces the price of the product as his share of the tariff.

Answer the question fuckup

 

[dblack]

Why were you not asking these questions when Biden, not only kept some of Trump's original tariffs, but actually increased some of them?

I was.

In fact, where were the Senate Republican to dispute Biden's tariffs like they are Trump's tariffs?

Sitting on their hands, waiting for their turn to do the same shit?

 

[Darkwind]

Beer was quietly added Wednesday to a list of aluminum-linked products now subject to a 25 percent U.S. import duty. The move, buried in a bureaucratic annex and part of a broader trade war unleashed by the Trump administration, has left European brewers fizzing with confusion — and drinkers foaming with rage.

The uncertainty goes beyond cans. The customs code used — “beer made from malt” — appears to cover all beer, no matter how it’s packaged: cans, bottles or kegs.
.....

The fallout is domestic, too. Much of the aluminum used in U.S. can production comes from Canada, and American smelters aren’t equipped to produce enough of the alloy used for beverage packaging.

Beer lovers haven’t exactly waited quietly. On Reddit’s r/beer, a forum of nearly half a million brewing nerds, the mood was bleak. One of the most upvoted reactions simply read: “A massive sales tax on beer? What a fucking asshole.”

Trump made all beer more expensive — and no one knows why

A 25 percent U.S. tariff meant for aluminum is now hitting all imported beers — bottled or canned.

www.politico.eu

Canada can avoid all of this by dropping every tariff they hold against the USA. Then we'll drop our tariffs and its all chumy and gets buds once again.

 

[1srelluc]

Can any MAGA supporter please explain which answers are correct below?

Who pays the tariff?

A) A company in a foreign country ships an item to the US and then mails a check or wires money to the US government to cover the tariff

B) The US company pays the US government when it picks up the shipment at the port

Also curious...

What happens when a tariff is increased?

A) The company in a foreign country simply sends a bigger check to the US government and gets by with less profit

B) The US company pays the US government more money when it picks up the shipment at the port and raises its prices to cover the higher cost which is paid by the US consumer

While true the company will hit a wall price-wise.

The consumer will decide that maybe I really don't need their Chi-Com made rubber dog puke.

A US company in a right to work state will decide that there's money to be made selling US made rubber dog puke and will start production.

 

[Woodznutz]

Can you give an example of this from the last few years where a froeign MFG and a US Importer shared the costs?

No specific examples.

Do Foreign Exporters Pay Tariffs?​

Depending on the Incoterms used, foreigner exporters in general do not pay for the tariffs. The cost falls on the importer at the border. But that does not mean exporters are not affected. If their products become too expensive, they risk losing sales.

Some foreign suppliers lower their prices to stay competitive. A Chinese electronics company selling laptops to the U.S. may offer discounts to help importers cover the tariff.

Others try to work out deals with importers. A fabric supplier in Vietnam might agree to share some of the extra costs caused by tariffs. This helps importers avoid raising prices too much while allowing exporters to keep selling in the same markets. These adjustments help businesses stay afloat, but they do not remove the impact of tariffs. The cost still needs to be covered somewhere in the chain.

Who Ultimately Pays the Tariffs?

Discover who truly pays tariffs in today's trade war. Explore the impact on consumers, firms, and the economy as higher prices and taxes reshape international trade.

incodocs.com

 

[Darkwind]

While true the company will hit a wall price-wise.

The consumer will decide that maybe I really don't need their Chi-Com made rubber dog puke.

A US company in a right to work state will decide that there's money to be made selling US made rubber dog puke and will start production.

Or the US made dog puke will seem a reasonable compromise without having to support slave labor.

 

[bendog]

Canada can avoid all of this by dropping every tariff they hold against the USA. Then we'll drop our tariffs and its all chumy and gets buds once again.

Thank you for responding with nothing to do with my post.

 

[Darkwind]

Thank you for responding with nothing to do with my post.

It has everything to do with it.

No tariffs against Americans, no tariffs against Canadians.

So simple that even you can understand it.

 

[bendog]

I particularly liked this gop rep/car dealer.

People will get used to paying 5-10K more for a car, and they'll be ok with it.

https://www.politico.com/news/magazine/2025/04/04/trump-tariffs-trade-war-consumers-pennsylvania-mike-kelly-00268645